LEE 10-K & 10-Q changes, risk factors and insider trading

Our ability to generate revenue is highly sensitive to the strength of the economies in which we operate and the demographics of the local communities that we serve.

In the past, these and other similar conditions and events have resulted in, and could lead to, a tightening of credit and capital markets, lower levels of liquidity, lower consumer and business spending, unemployment, declines in real estate values, increases in employee-related costs, and other adverse economic conditions. These changes may negatively affect the sales of our products, increase exposure to losses from bad debts, increase the cost and decrease the availability of financing, or increase costs associated with publishing and distributing our publications. In addition, printing and distribution costs, including the costs of paper and ink, are a significant expense for the Company.us. We expect increases in these costs in the near-term from various factors, including increases in the cost of raw materials, energy, labor, transportation, and distribution, due to inflation and other adverse factors on the economy.

As a public company, we are required to maintain effective internal controls for financial reporting and disclosure controls and procedures. In particular, Section 404 of the Sarbanes-Oxley Act requires us to perform system and process evaluations and testing of our internal controls over financial reporting to allow management to report on the effectiveness of our internal controls over financial reporting. Compliance with Section 404 may require us to incur substantial accounting expenses and expend significant management efforts. In the past, our testing has revealed and in the future may reveal deficiencies in our internal controls over financial reporting that are deemed to be material weaknesses. In the event we identify significant deficiencies or material weaknesses in our internal controls that we cannot remediate in a timely manner, the market price of our stock could decline if investors and others lose confidence in the reliability of our financial statements and we could be subject to sanctions or investigations by the SEC, Nasdaq, or other applicable regulatory authorities.

RiskRisks Related to Competitionour fromCommon Digital MediaStock

Currently, a primary source of revenue is from advertising and marketing services, which accounts for 45% of our 2025 revenue. Subscription revenue accounts for 46% of our 2025 revenue. The media publishing industry has experienced rapid evolution in consumer demands and expectations due to advances in technology, which have led to a proliferation of delivery methods for news and information. The number of consumers who access online services through devices other than personal computers, such as tablets and mobile devices, has increased dramatically in recent years and likely will continue to increase. The media publishing industry also continues to be affected by demographic shifts, with older generations preferring more traditional print newspaper delivery and younger generations consuming news through digital media. Also, the revenues generated by media publishing companies have been affected significantly by the shift in advertising expenditures towards digital media.

We compete for audiences and advertising revenue with newspapers; and otherdigital media such as web-based digital platforms (e.g., Alphabet, Amazon, Meta, X, TikTok etc.), streaming services, podcasts; and traditional media platforms including magazines, broadcast, cable and satellite television, radio, direct mail, and billboards. As the use of the internetInternet and mobile devices has increased,increases, we havelose lostrevenue somefrom classified advertising and subscribers to online advertising businesses and free Internet sites that containcontaining abbreviated versions of our publications. Some of our current and potential competitors have greater financial and other resources than we have. If we fail to compete effectively with competing newspapers and other media, our results of operations may be materially adversely affected.

Risks Related to Our Indebtedness and Liquidity

At its inception, the aggregate principal amount and applicable interest rate of the Term Loan was $576.0 million and 9% annual rate, respectively, the proceeds of which were used to refinance our then-outstanding debt and fund the acquisition of BH Media and Buffalo News. The Term Loan is collateralized by all Company assets. Currently,As of September 28, 2025, the Term Note has an aggregate principal outstanding amount of $445.9$455.5 million. Our ability to make scheduled payments depends on our financial condition and operating performance, which are subject to prevailing economic and competitive conditions and to certain financial, business, competitive, legislative, regulatory, and other factors beyond our control. We may be unable to maintain a level of cash flow sufficient to permit us to pay the principal and interest on our debt.

The terms of the 2020 Refinancing,Refinancing limit our ability to take certain actions without requisite lender approval and modification of the loan agreements. These limitations include restrictions on incurring additional indebtedness, creating certain liens, making certain investments or acquisitions, issuing dividends, repurchasing shares of Company stock, and engaging in other capital transactions. While we have an established relationship with BH Finance, whose priorities and interests are familiar to us, there is no assurance BH Finance will approve or consent to our activities, even if the activities are in the best interests of our stockholders. If we are unable to secure the required consent of BH Finance,Finance (including with respect to the proposed rights offering and other strategic or financing transactions), our ability to take advantage of future opportunities, including acquisition or financing opportunities, could be restricted.

We rely on our information technology and communications systems to manage our business data, including communications, news and advertising content, digital products, order entry, fulfillment and other business processes. These technologies and systems also help us manage many of our internal controls over financial reporting, disclosure controls and procedures and financial systems. Attempts to compromise information technology and communications systems occur regularly across many industries and sectors, and we may be vulnerable to security breaches resulting from accidental events (such as human error) or deliberate attacks. Moreover, the techniques used to attempt attacks and the perpetrators of such attacks are constantly expanding. We face threats both from use of malicious code (such as malware, viruses, and ransomware), employee theft or misuse, advanced persistent threats, and phishing and denial-of-service attacks. TheWe Company hashave complied with all applicable legal requirements relating to this activity. As cyberattacks become increasingly sophisticated, and as tools and resources become more readily available to malicious third parties, the Companywe will incur increased costs to secure its technology environment and there can be no guarantee that the Company’sour and our third-party vendors’ actions, security measures and controls designed to prevent, detect or respond to security breaches, to limit access to data, to prevent destruction, alteration, or exfiltration of data, or to limit the negative impact from such attacks, can provide absolute security against compromise. As a result, our business data, communications, news and advertising content, digital products, order entry, fulfillment and other business processes may be lost, destroyed, disclosed, misappropriated, altered or accessed without consent and various controls, automated procedures and financial systems could be compromised.

Local mastheads (e.g., publishing periodical titles, web site domain names, and trade names) are not subject to amortization. Non-amortized intangible assets are tested for impairment annually on the first day ofduring the fourth fiscal quarter or more frequently if events or changes in circumstances suggest the asset might be impaired.

Our quantitative impairment analysis includes several inputs that are considered estimates, these include royalty rates, discount rates, five-year revenue forecast, and long term growth rates. All of these estimates are subject to uncertainty as future results may or may not be achieved. In 2024,2025, the royalty rates utilized a range from 0% to 1.0%; a 50-basis point decrease in royalty rates would result in an additional $4.6$1.5 million of impairment. The Company’sOur discount rate utilized in the analysis has ranged from 11.0% in 2022 to 12.5% in 2024,2024 to 13.0% in 2025, depending on market conditions. Increasing the discount rate by 100 basis points would result in an additional $0.1 million of impairment. TheWe Companyhave has hadused various revenue forecasts utilized in the analysis over different years.

For information related to the Company'sour Goodwill impairment analysis, refer to Note 4 to the Consolidated Financial Statements.

We account for our pension, postretirement and postemployment plans in accordance with the applicable accounting guidance, which requires us to include the funded status of our pension plans in our balance sheets and to recognize, as a component of other comprehensive income (loss), income, the gains or losses that arise during the period but are not recognized in pension expense. The service cost component of net period benefit cost is reported on the Consolidated Statements of Income and Comprehensive (Loss) Income and included in Compensation while all other components are included in other non-operating income/expense.

We are subject to income taxes in the U.S. and record our tax provision forbased on the anticipatedexpected tax consequences inof our reported results of operations. Tax laws are complex and subjectopen to differentinterpretation, interpretationsrequiring by the taxpayer and respective government taxing authorities. Significant managementsignificant judgment is required in determining our provisioncurrent forand deferred income taxes, deferred tax assetsprovisions, andas liabilities,well andas theany valuation allowance recorded against our neton deferred tax assets, if any.

Our current and deferred income tax provisions are calculated based on estimates and assumptions that could differ from the actual results reflected in income tax returns filed during the subsequent year. TheseWe review these estimates are reviewed and adjusted, if needed, throughout the year. Adjustments between our estimatesyear and therecord adjustments when actual results of filed returns are recorded when identified.known.

Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities using currently enacted tax rates. Deferred income tax assets are recognized for deductible temporary differences and loss carryforwards and deferred income tax liabilities are recognizedbased for taxable temporary differences. Temporaryon differences are the difference between the reportedfinancial amountsreporting and tax bases of assets and liabilitiesliabilities, andusing theirenacted tax basis.rates. Deferred income tax assets are reduced by a valuation allowance when, in our opinion, it is more likely than not that some portion or all of the deferred income tax assets will not be realized. DeferredThese income tax assets and liabilitiesbalances are adjusted for the effects of changes in tax laws and rates on the date of enactment.

We recognize the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflectedrecorded in the period inof whichchange. the change in judgment occurs. We record interestInterest and penalties related toon unrecognized tax benefits asare aincluded component ofin income tax expense.

To facilitate a comparison of our results without the impact of the 53rd week of revenues and expenses, certain revenue and expense trends, as described below, are presented on a comparativecomparable basis which is calculated by removing the 53rd week of revenue or expense in 2024.

Total operating revenue totaled $611.4$562.3 million in 2024,2025, down $79.8$49.0 million, or 11.5%,8.0%, compared to 2023.2024. On a comparativecomparable basisbasis, total operating revenue declined 13.0%.6.5%.

Other revenue, which primarily consists of commercial printing revenue and digital services from BLOX Digital,Digital and commercial printing revenue, totaled $53.8$50.9 million, a 8.7%5.3% decrease compared to 2023.2024. On a comparativecomparable basisbasis, other revenue decreased 9.7%.4.2%. Digital services revenue totaled $20.5$20.1 million in 2024,2025, a 5.9%2.1% increasedecrease compared to 2023.2024. On a comparativecomparable basis digital services revenue increaseddecreased 5.3%.1.6%. Commercial printing revenue totaled $17.5$16.2 million in 2024,2025, a 13.0%7.4% decline compared to 2023,2024, primarily driven by reduction in print volumes from our partners. On a comparativecomparable basis, commercial printing revenue was down 14.6%.5.8%.

Total digital revenue including digital advertising revenue, digital-only subscription revenue and digital services revenue totaled $299.1$298.1 million in 2025, flat to 2024, a 9.4% increase over 2023, and represented 48.9%53.0% of our total operating revenue in 2024,2025, compared to 39.5%48.9% in 2023.2024.

Total operating expenses weretotaled $611.4$571.3 million, a 7.4%6.6% decrease compared to 2023.2024. Cash Costs (a non-GAAP financial measure discussed below) were $553.3$523.6 million, a 10.1%5.4% decrease compared to 2023.2024.

Compensation expense decreasedtotaled $32.3$216.0 million in 2024, or2025, a 12.1%7.9% decrease compared to 2023.2024. The decrease is attributable to reductions in full timefull-time employees ("FTEs") due to continued business transformation efforts, partially offset by investments in digital talent.

Newsprint and ink costs decreasedtotaled $8.5$13.0 million in 2024, or2025, a 33.7%22.9% decrease compared to 2023.2024. This decrease was attributable to declines in newsprint volumes.

Other operating expenses decreasedtotaled $21.1$294.6 million in 2024,2025, ordown a 6.5% decrease2.4% compared to 2023.2024. Other operating expenses include all operating costs not considered to be compensation, newsprint, depreciation and amortization, or restructuring costs and assets loss on sales, impairments, and other, net. The largest components are costs associated with printing and distribution of our printed products, digital cost of goods sold and facility expenses. The decrease is primarily attributable to lower delivery and other print-related costs due to lower volumes of our print edition.edition, partially offset by increases in digital cost of goods sold.

Assets loss (gain) on sales, impairments and other wastotaled a$3.0 netmillion lossin of2025 compared to $11.2 million in 20242024. comparedImpairments towithin athis netcategory losswere of $1.9$7.0 million in 2023. Impairment losses in 20242025 and 2023 totaled $7.8 million andin $7.72024, millionrespectively, forrelated to mastheads. Additionally, $1.3 million and $1.3$4.2 million of goodwill was allocated to the sale of certain non-core operations in 20242025 and 2023, respectively. Assets loss (gain) on sales are part the Company's ongoing real estate and non-core asset monetization. They totaled a net loss of $2.2$1.3 million in 2024 and a net gain of $6.0 million in 2023.2024.

INCOME TAX BENEFITTAXES

In 2024, weWe recorded income tax benefit of $6.9 million, or 16.2% of pretax loss in 2025 and $7.6 million, or 24.4% of pretax loss and in 2023,2024 we recorded an income tax benefit of $0.3 million, or 11.3% of pretax loss.. See Note 1213 of the Notes to the Consolidated Financial Statements, included herein, for a discussion of the difference between the expected federal income tax rate and the actual tax rates.

NET INCOMELOSS AND EARNINGS PER SHARE

Net loss was $23.6$35.7 million in 20242025 compared to net loss of $2.7$23.6 million in 2023.2024. Loss per common share was $6.20 in 2025 compared to a loss of $4.35 per share in 2024. The change reflects the various items discussed above.

In this report, we present Adjusted EBITDA and cashCash costs,Costs which are non-GAAP financial performance measures that exclude from our reported GAAP results the impact of certain items consisting primarily of restructuring charges and non-cash charges. We believe such expenses, charges,charges and gains are not indicative of normal, ongoing operations, and their inclusion in results makes for more difficult comparisons between years and with peer group companies. In the future, however, we are likely to incur expenses, charges,charges and gains similar to the items for which the applicable GAAP financial measures have been adjusted and to report non-GAAP financial measures excluding such items. Accordingly, exclusion of those or similar items in our non-GAAP presentations should not be interpreted as implying the items are non-recurring, infrequent, or unusual.

Adjusted EBITDA is a non-GAAP financial performance measure that enhances financial statement users' overall understanding of the operating performance of the Company. The measure isolates unusual, infrequent, or non-cash transactions from the operating performance of the business. This allows users to easily compare operating performance among various fiscal periods and how management measures the performance of the business. This measure also provides users with a benchmark that can be used when forecasting our future operating performance of the Company that excludes unusual, nonrecurring or one-time transactions. Adjusted EBITDA is also a component of the calculation used by stockholders and analysts to determine the value of our business when using the market approach, which applies a market multiple to financial metrics. It is also a measure used to calculate theour leverage ratio of the Company,ratio, which is a key financial ratio monitored and used by the Companyus and itsour investors. Adjusted EBITDA is defined as net income (loss), plus non-operating expenses, net, income tax expense,expense (benefit), depreciation and amortization, assets loss (gain) on sales, impairments and other, restructuring costs and other, stock compensation and our 50% share of EBITDA from TNI and MNI, minus equity in earnings of TNI and MNI.

Cash Costs represent a non-GAAP financial performance measure of operating expenses which are measured on an accrual basis and settled in cash. This measure is useful to investors in understanding the components of the Company’sour cash-settled operating costs. Generally, we provide forward-looking guidance of Cash CostsCosts, which can be used by financial statement users to assess the Company'sour ability to manage and control its operating cost structure. Cash Costs are defined as compensation, newsprint and ink and other operating expenses. Depreciationexpenses and amortization, assets loss (gain) on sales, impairments and other,exclude restructuring costs and otherother, non-cash operating expenses and other non-operating expenseswhich are excluded.typically settled in cash.

As of MarchJune 13,28, 2026, David H. Hoffmann, our Chairman of the Board, ("Mr. Hoffmann") beneficially owns 53.5%54.5% of the aggregate voting power of our outstanding capital stock.

As a result, we will beare a “controlled company” under the corporate-governance standards of The Nasdaq Stock Market LLC (“Nasdaq”) for so long as more than 50% of the voting power of our outstanding capital stock is held by Mr. Hoffmann. We will effectively be a closely held corporation with a single stockholder (together with his affiliates) exercising substantial control over our affairs. Under Nasdaq rules applicable to controlled companies, we are permitted to rely on certain exemptions from Nasdaq’s corporate-governance requirements, including exemptions from the requirements that a majority of our Board be independent and that our compensation and nominating and corporate-governance committees be composed entirely of independent directors. Although we do not currently intend to rely on these exemptions, we could elect to do so in the future. If we rely on one or more of these exemptions, you may not have the same protections afforded to stockholders of companies that are subject to all of Nasdaq’s corporate-governance requirements.

The following discussion includes comments and analysis relating to our results of operations and financial condition as of and for the three and sixnine months ended MarchJune 29,28, 2026. This discussion should be read in conjunction with the Consolidated Financial Statements and related Notes thereto, included herein, and our 2025 Annual Report on Form 10-K. Share and dollar amounts are presented on an actual basis unless otherwise noted.

For the three months ended MarchJune 29,28, 2026, our total operating revenue was $122.0$126.0 million, down 11.2%10.8% from the three months ended MarchJune 30,29, 2025. Total Digital Revenue was $67.8$71.6 million and represented 55.6%56.8% of our total operating revenue. Total Print Revenue was $54.2$54.4 million, a 16.4%14.2% decrease to the three months ended MarchJune 30,29, 2025. Our digital-only subscription businessrevenue totaled $22.3$21.8 million in the quarter.quarter, Thea year-over-year revenue7.0% decline of 6.3% isyear-over-year driven by lasting impact from last year's Cyber Incident and accelerated churn following inflationary surcharges implemented in the prior fiscal year. Another key piece of our digital business, Amplified Digital® agency revenue totaled $22.8$27.1 million in the quarter.

Total operating expenses were $114.4$118.3 million, a 20.0%13.9% decrease in the three months ended MarchJune 29,28, 2026, compared to the three months ended MarchJune 30,29, 2025. The decrease reflects continued disciplined cost management,management and the absence of prior-year Cyber Incident response costs,costs and $3.8 million of business interruption insurance recoveries recognized in the current quarter. See(see Note 11.12). Cash Costs of $112.0$109.4 million, a non-GAAP financial measure used to summarize certain operating expenses (see reconciliation of non-GAAP financial measures below), were down 14.6%14.5% in the three months ended MarchJune 29,28, 2026, reflecting continued disciplined cost management.

Net lossincome totaled $1.7$5.2 million, an 85.8% improvementmillion compared to a net loss of $12.0$1.7 million in the prior-year period. Adjusted EBITDA (a non-GAAP financial measure) totaled $15.1$18.4 million, a 94.7%23.0% increase over the prior-year period. The improvements reflect the cost actions and business interruption insurance recoveries described above and the non-recurrence of prior-year Cyber Incident costs.

Total operating revenue was $122.0$126.0 million in the three months ended MarchJune 29,28, 2026, down $15.4$15.3 million, or 11.2%,10.8%, compared to the three months ended MarchJune 30,29, 2025.

Advertising and marketing services revenue totaled $55.0$59.3 million, down 9.1%10.9% in the three months ended MarchJune 29,28, 2026, compared to the prior-year period. Print advertising revenues were $14.3$14.5 million, down 13.7%17.1% in the three months ended MarchJune 29,28, 2026 compared to the prior-year period related to continued secular declines in demand for print advertising related to the decline in print subscribers by 21.7%19.3% to 221,000 compared to the prior-year period.period of 274,000. Digital advertising and marketing services revenue totaled $40.7$44.8 million, down 7.4%8.7% in the three months ended MarchJune 29,28, 2026 compared to the prior-year period. Digital advertising and marketing services represented 74.0%75.6% of the three months ended March 29, 2026 total advertising and marketing services revenue,revenue for the three months ended June 28, 2026, compared to 72.7%73.8% in the prior-year period.

Subscription revenue totaled $55.2$54.7 million, down 14.9%11.1% in the three months ended MarchJune 29,28, 2026 compared to the prior-year period. Declines in volumes, consistent with historical and industry trends, were partially offset by strategic rate increases. Digital-only subscribers decreased 18.8%12.8% to 591,000584,000 at MarchJune 29,28, 2026 compared to 728,000670,000 at MarchJune 30,29, 2025. Digital-only subscription revenue declined 6.3%7.0% compared to the prior-year period.period driven by lasting impact from last year's Cyber Incident and accelerated churn following inflationary surcharges implemented in the prior fiscal year.

Other revenue, which primarily consists of digital services from BLOX Digital of $4.8$4.9 million, commercial printing revenue of $3.7$3.6 million and third party delivery and other of $1.4$3.4 million, decreased $0.2$1.3 million, or 1.9%,9.6%, in the three months ended MarchJune 29,28, 2026 compared to the prior-year period. Digital services revenue decreased 0.9%7.4% in the three months ended MarchJune 29,28, 2026 compared to the prior-year period. Commercial printing revenue decreased 2.4%14.4% in the three months ended MarchJune 29,28, 2026 compared to the prior-year period, primarily driven by lower print volumes from our partners.

Total digital revenue including digital advertising revenue, digital subscription revenue and digital services revenue totaled $67.8$71.6 million, a decrease of 6.6%,8.1%, in the three months ended MarchJune 29,28, 2026 compared to the prior-year period, and represented 55.6%56.8% of our total operating revenue in the three months ended MarchJune 29,28, 2026.

Total operating expenses were $114.4$118.3 million, a 20.0%13.9% decrease in the three months ended MarchJune 29,28, 2026, compared to the three months ended MarchJune 30,29, 2025. The decrease reflects continued disciplined cost management,management and the absence of prior-year Cyber Incident response costs, and $3.8 million of business interruption insurance recoveries recognized in the current quarter. See Note 11.costs. Cash Costs of $112.0$109.4 million, a non-GAAP financial measure used to summarize certain operating expenses (see reconciliation of non-GAAP financial measures below), were down 14.6%14.5% in the three months ended MarchJune 29,28, 2026, reflecting continued disciplined cost management.

Compensation expense decreased $9.9$2.6 million, or 17.5%,5.5%, in the three months ended MarchJune 29,28, 2026 compared to the prior-year period. The decrease reflects continued headcount reductions as we execute our digital transformation strategy.

Newsprint and ink costs decreased $0.6$0.7 million, or 19.0%,22.9%, in the three months ended MarchJune 29,28, 2026 compared to the prior-year period. The decrease is attributable to lower print volumes, consistent with continued secular declines in demand for print.

Other operating expenses decreased $8.7$15.2 million, or 12.2%,19.6%, in the three months ended MarchJune 29,28, 2026 compared to the prior-year period. Other operating expenses include all operating costs not considered to be compensation, newsprint, insurance proceeds, depreciation and amortization, or restructuring costs and assets(gain) loss on asset sales, impairments, and other, net. The largest components are costs associated with printing and distribution of our printed products, digital cost of goods sold and facility expenses.

Insurance proceeds were a net gain of $3.8$0.6 million in the three months ended MarchJune 29,28, 2026 which represent business interruption insurance recoveries recognized in the current quarter related to the prior-year Cyber Incident. See further information in Note 11.12.

Restructuring costs and other decreased $2.9$1.2 million, or 44.1%16.6% in the three months ended MarchJune 29,28, 2026, compared to the prior-year period due primarily to $1.9 million ofhigher expenses related to the Cyber incident included in the prior year and current year reimbursements of $0.8 million.year.

Depreciation and amortization expense decreased $1.7$0.3 million, or 32.0%,6.8%, in the three months ended MarchJune 29,28, 2026. This decrease is attributable to assets being fully depreciated or amortized.

(Gain) loss on asset sales, impairments and other, net, was a net gain of $0.9$0.1 million in the three months ended MarchJune 29,28, 2026 compared to a net loss of $0.1$1.6 million in the prior-year period.period, Thea gaindecrease of $1.5 million driven by fewer property sales in 2026 was primarily related to the salecurrent ofyear two properties.quarter.

Operating income ofwas $8.5$8.6 million, increasedan $13.0increase of $4.0 million infrom the three months ended March 29, 2026 compared to an operating loss of $4.5$4.7 million in the prior-year period.period, Thisprimarily increasereflecting is related to decreases inlower compensation expense and other operating expenses which includes $3.8 million in business interruption reimbursements in the current year period.expenses.

Non-operating income and expense decreased by $2.5$7.0 million, or 26.8%77.3% in the three months ended MarchJune 29,28, 2026 compared to the prior-year period. The decrease is primarily driven by a settlement gain in our Postretirement benefit plans as we irrevocably transferred certain postretirement life insurance obligations to a third-party insurer described in Note 9 and a decrease in interest expense related to the rate reduction on our debt described in Note 7. Our weighted average cost of debt was 8.0% and 9.0% as of the three months ended March 29, 2026 and the three months ended March 30, 2025.8.

We recorded an income tax expense of $3.4$1.4 million in the three months ended MarchJune 29,28, 2026 compared to an income tax benefit of $1.8$2.7 million in the prior-year period. The increase in income tax expense for the current period is mainly due to a higher valuation allowance related to additional interest expense carryforwards that are not expected to be fully realized.

Net income (loss) and LossNet income (loss) Per Share

Net lossincome was $1.7$5.2 million and diluted lossincome per share was $0.16$0.21 for the three months ended MarchJune 29,28, 2026 compared to net loss of $12.0$1.7 million and diluted losses per share of $2.07$0.31 for the prior-year period. The improvement reflects the cost reduction actions, the interest rate reduction, the non-recurrence of prior-year Cyber Incident costs,costs discussed above and businessa interruptionsettlement insurancegain recoveriesin discussedour above.Postretirement benefit plans.

SixNine Months Ended

Total operating revenue was $252.0$378.0 million, down $29.9$45.2 million, or 10.6%10.7% in the sixnine months ended MarchJune 29,28, 2026 compared to the sixnine months ended MarchJune 30,29, 2025.

Advertising and marketing services revenue totaled $115.0$174.3 million, down 9.5%10.0% in the sixnine months ended MarchJune 29,28, 2026 compared to the prior-year period. Print advertising revenues were $31.5$45.9 million, down 13.5%14.7% in the sixnine months ended MarchJune 29,28, 2026 compared to the prior-year period driven by continued secular declines and elimination of unprofitable print products. Digital advertising and marketing services totaled $83.5$128.3 million, down 7.9%8.2% in the sixnine months ended MarchJune 29,28, 2026 compared to the prior-year period. Digital advertising and marketing services represented 72.6%73.6% of the sixnine months ended MarchJune 29,28, 2026 total advertising and marketing services revenue, compared to 71.4%72.2% in the prior-year period.

Subscription revenue totaled $112.9$167.6 million, down 13.1%12.4% in the sixnine months ended MarchJune 29,28, 2026 compared to the prior-year period. Declines in volumes, consistent with historical and industry trends, were partially offset by strategic rate increases. Digital-only subscribers decreased 18.8%12.8% to 591,000584,000 as Marchof 29,June 28, 2026. Digital-only subscription revenue declined 0.8%2.9% compared to the prior-year period.

Other revenue, which primarily consists of digital services from BLOX Digital of $9.6$14.5 million, commercial printing revenue of $7.6$11.1 million and third party delivery and other of $3.1$10.4 million, decreased $0.8$2.1 million, or 3.3%,5.5%, in the sixnine months ended MarchJune 29,28, 2026 compared to the prior-year period. Digital services revenue decreased by 3.0%4.6% in the sixnine months ended MarchJune 29,28, 2026 compared to the prior-year period. Commercial printing revenue decreased 4.1%7.7% in the sixnine months ended MarchJune 29,28, 2026 compared to the prior-year period, primarily driven by lower print volumes from our partners.

Total digital revenue including digital advertising revenue, digital subscription revenue and digital services revenue totaled $138.1$209.7 million, a decrease of 5.4%6.3% in the sixnine months ended MarchJune 29,28, 2026 over the prior-year period, and represented 54.8%55.5% of our total operating revenue in the sixnine months ended MarchJune 29,28, 20262026.

Total operating expenses were $240.4$358.6 million, a 17.7%16.5% decrease in the sixnine months ended MarchJune 29,28, 2026, compared to the sixnine months ended MarchJune 30,29, 2025. The decrease reflects continued disciplined cost management, the absence of prior-year Cyber Incident response costs, and $5.8$6.4 million of business interruption insurance recoveries recognized in the current period.period See(see Note 11.12). Cash Costs of $233.2$342.6 million, a non-GAAP financial measure used to summarize certain operating expenses (see reconciliation of non-GAAP financial measures below), were down 13.5%13.9% in the sixnine months ended MarchJune 29,28, 2026, reflecting continued disciplined cost management.

Compensation expense decreased $20.7$23.4 million, or 17.7%14.2% in the sixnine months ended MarchJune 29,28, 2026 compared to the prior-year period from reductions in full time employees due to continued business transformation efforts.

Newsprint and ink costs decreased $1.2$2.0 million, or 18.5%19.9% in the sixnine months ended MarchJune 29,28, 2026, compared to the prior-year period. The decrease is attributable to declines in newsprint volumes.

Other operating expenses decreased $14.6$29.7 million, or 10.0%,13.3%, in the sixnine months ended MarchJune 29,28, 2026 compared to the prior-year period. Other operating expenses include all operating costs not considered to be compensation, newsprint, insurance proceeds, depreciation and amortization, or restructuring costs and assets(gain) loss on asset sales, impairments, and other, net. The largest components are costs associated with printing and distribution of our printed products, digital cost of goods sold and facility expenses.

Insurance proceeds were a net gain of $5.8$6.4 million in the sixnine months ended MarchJune 29,28, 2026 which represent business interruption insurance recoveries related to the prior-year Cyber Incident.Incident See(see Note 11.12).

Restructuring costs and other decreased $4.9$6.1 million, or 41.8%32.2% in the sixnine months ended MarchJune 29,28, 2026, compared to the sixnine months ended MarchJune 30,29, 2025. The prior year period included $1.9$3.1 million of expenses related to the Cyber Incident and costs associated with the shutdown of one of our production facilities.

Depreciation and amortization expense decreased $4.3$4.6 million, or 38.0%,30.2%, in the sixnine months ended MarchJune 29,28, 2026 compared to the prior-year period. The decrease in both is attributable to assets being fully depreciated or amortized.

(Gain) loss on asset sales, impairments and other, net, was $0.9$1.0 million in the sixnine months ended MarchJune 29,28, 2026 compared to a net gain of $0.8$2.4 million in the prior-year period. Current year gains on sales waswere primarily related to the sale of two properties.

The factors noted above resulted in an operating income of $13.8$22.4 million in the sixnine months ended MarchJune 29,28, 2026 compared to an operating loss of $7.9$3.2 million in the prior-year period primarily due to decreases inlower compensation expense and other operating expenses whichtogether includeswith $5.8$6.4 million of business-interruption recoveries recognized in businessthe interruption reimbursements.period.

Non-operating income and expense decreased by $2.7$9.7 million, or 14.3%34.8% compared to the sixnine months ended MarchJune 30,29, 2025. The decrease is primarily driven by a settlement gain in our Postretirement benefit plans as we irrevocably transferred certain postretirement life insurance obligations to a third-party insurer described in Note 9 and a decrease in interest expense related to the rate reduction on our debt described in Note 7. Our weighted average cost of debt was 8.0% and 9.0% at the end of the six months ended March 29, 2026 and the prior-year period.8.

We recorded an income tax expense of $4.4$5.8 million in the sixnine months ended MarchJune 29,28, 2026 compared to $1.5$1.3 million benefit in the sixnine months ended MarchJune 30,29, 2025. The increase in income tax expense for the current period is mainly due to a higher valuation allowance related to additional interest expense carryforwards that are not expected to be fully realized.

Net loss and LossNet loss Per Share

Net loss was $6.8$1.7 million and diluted loss per share was $0.78$0.22 for the sixnine months ended MarchJune 29,28, 2026 compared to net loss of $28.2$29.9 million and diluted losses per share of $4.87$5.16 for the prior-year period. The changeimprovement reflects the variouscost itemsreduction actions, the interest rate reduction, the non-recurrence of prior-year Cyber Incident costs discussed above.above and a settlement gain in our Postretirement benefit plans.

Adjusted EBITDA is a non-GAAP financial performance measure that enhances financial statement users' overall understanding of our operating performance. The measure isolates unusual, infrequent, or non-cash transactions from the operating performance of the business. This allows users to easily compare operating performance among various fiscal periods and how management measures the performance of the business. This measure also provides users with a benchmark that can be used when forecasting our future operating performance that excludes unusual, nonrecurring or one-time transactions. Adjusted EBITDA is also a component of the calculation used by stockholders and analysts to determine the value of our business when using the market approach, which applies a market multiple to financial metrics. It is also a measure used to calculate our leverage ratio, which is a key financial ratio monitored and used by us and our investors. Adjusted EBITDA is defined as net income (loss), plus non-operating expenses, net, income tax expense (benefit), depreciation and amortization, assets loss (gain) loss on asset sales, impairments and other, restructuring costs and other, stock compensation and our 50% share of EBITDA from TNI and MNI, minus equity in earnings of TNI and MNI.

Adjusted EBITDA and Cash Costs are reconciled to net income (loss) and operating expenses, below, the closest comparable numbers under GAAP.

The table below reconciles the non-GAAP financial performance measure of Adjusted EBITDA to net loss,income (loss), the most directly comparable GAAP measure:

Cash usedprovided inby operating activities totaled $1.8$6.1 million in the sixnine months ended MarchJune 29,28, 2026 down $6.4 million compared to cash used in operating activities of $8.1$0.8 million in the sixnine months ended MarchJune 30,29, 2025. The improvement was primarily driven by an increase in operating results of $7.8$8.2 million (defined as net loss adjusted for non-working capital items) offset primarily by a decrease in working capital of $1.5$2.8 million. The decrease in working capital is primarily related to higher payments related to the Private Placement expenses offset by improved accounts receivable driven by lower revenue in the period.

Cash used in investing activities totaled $0.3$1.3 million in the sixnine months ended MarchJune 29,28, 2026 compared to cash provided by investing activities of $3.2$5.1 million in the sixnine months ended MarchJune 30,29, 2025. The sixnine months ended MarchJune 30,29, 2025 included $6.1$8.7 million in proceeds from the sale of assets as we divested non-core real estate compared to only $1.1 million in asset sale proceeds in the current period.

Cash provided by financing activities was $45.3$44.6 million for the sixnine months ended MarchJune 29,28, 2026 from net Private Placement proceeds described in Note 2.3.

As of MarchJune 29,28, 2026, our liquidity, consisting of cash on hand, was $53.3$59.4 million. For the sixnine months ended MarchJune 29,28, 2026, net cash usedprovided inby operating activities was $1.8$6.1 million, downup from $8.1$0.8 million used in the sixnine months ended MarchJune 30,29, 2025. This increase is primarily attributable to the improved operating results and working capital management compared to the prior-year period.